Long-term value (LTV) is the value of a company or product over an extended period. In its simplest form, “value” is cash, money, the lifeblood of any business (but it can also be assets, prestige, or anything else a company seeks to grow). And there are plenty of ways to make a quick buck for you or your company.
Business development is not about get-rich-quick schemes and I-win-you-lose tactics that create value that’s gone tomorrow as easily as it came today. It is about creating opportunities for that value to persist over the long-term, to keep the floodgates open so that value can flow indefinitely.
Business Development Strategies:
Fast growth is easier to achieve in sectors driven by innovation, and the launching of new products or services can fuel considerable growth quickly.
Most businesses opt for a more gradual, ‘organic’, growth that is more manageable and involves less risk, however, there are several well-established strategies: Sell more to existing customers; This may involve working harder to build relationships and taking on more sales staff.
Attract new customers through increased investment in promotion and advertising.
Expand existing sales channels, or create new ones; This might include, for example, developing online sales channels.
Enter new markets; Exporting could be an option, selling beyond your region or aiming your offer at an entirely new set of customers. This may also involve opening new outlets.
Introducing new products or services to your marketplace can give you an instant edge – provided you have researched your market thoroughly with clear-cut strategy.
Introduce new technology to your business; Better equipment can increase your capacity and has the potential to free up staff time if used efficiently.
Create partnerships with other businesses; Sharing resources and expertise with another business will enable you both to flourish without overstretching yourselves. It also opens the door to public sector contracts.
Successfully tendering for contracts can stimulate the growth that takes your business to a new level. As you increase your resources, you will be in a better position to win more contracts.
Networking can introduce you to potential customers, business partners, investors, and mentors. Growth involves risk and commitment; but if well-managed, it should be achievable for most businesses. It will not happen fast or enable you to retire next year, but every large business started somewhere.
Is lack of capital or staff holding you back from achieving your business goals?
Putting your dreams on hold isn’t the only choice. Here are options to consider:
- You can use freelancers, outside contractors or temporary workers to staff up and down as needed, cutting your overhead costs compared to hiring employees.
- You can partner with another small business to achieve your goals, such as by sharing salespeople or manufacturing facilities to launch a new product line.
- You can also barter with other businesses or join a barter association to get the products and services you need without a large cash outlay.
If you’ve got growth plans for your business, this year you can’t achieve with your current level of capital, now is the time to seek the financing you need to achieve your goals. You’ll never know until you try! Good luck.
Business Development and Strategy
The business development comprises several tasks and processes aimed at developing and implementing growth opportunities in an organisation. It is a subset of the fields of business, commerce, and organisational theory.
The field of Business development is concerned with the analytical preparation of potential growth opportunities for the senior management or board of directors and the subsequent support and monitoring of its implementation. Both in the development phase and the implementation phase, the business developer collaborates and integrates the knowledge and feedback from the organisation’s specialist functions, for example, R&D, production, marketing, and sales to assure that the organisation can implement the growth opportunity successfully.
Business Development Steps:
Step I: Assessment of Your Business Idea
The first step is natural, an assessment of the status of the project or business. During this stage, we will address four primary elements: “As Is, Should Be, Barriers, and Pay-outs.” Through this step, the nature of the business model and consulting relationship are formed.
Step II: The Language of Your Business
Business in its pure and simple form is a conversation that starts with a “Market Need” and develops some type of product or service to address that need. This is called the “Value Proposition.” As the Value Proposition comes into focus, so too does the evidence about how to build a structure around it.
Step III: Market Research and Analysis
The next evolution of the planning process looks at external factors that control and shape the marketplace. These are issues such as potential revenues within a market, current trends in that market, government regulations, demographics of a market, growth rates, new technology, competitive analysis, and other factors that will have a bearing upon the business.
Step IV: Products and Services
After the market has been defined, it is time to outline the product and/or service. We are ready to explain how each product or service fits into the market and the specific needs that each will address. In this section, things such as product descriptions, vertical market price points, overall product matrix, and future ancillary product plans are explained.
Step V: Assessment of Human Capital
Any successful business enterprise has, at the forefront of its inception, a charismatic leader who is able to motivate the team around an idea or vision; this core issue must be addressed.
Step VI: Strategic Sales & Marketing
Analysis model for Sales and Strategic marketing must be developed. The model must give a clearer understanding of tactics and strategies which ultimately lead to a viable enterprise. A system that examines how a buyer moves through the thought process of a buying decision and what it will take to create repeat and referral business must be developed.
Step VI: Operations and Logistics
This is the “How-to” part of the process – it is where everything comes together in one cohesive model. This part of the planning lays out the capital equipment, raw materials, supply chain criteria, human resource definitions, office space requirements, process mapping, delivery channels, interdepartmental communication, business systems, lead generation, customer service support issues, information technology, financial models, sales, marketing, and management roles and responsibilities.
Step VII: Preparing Your Financial Strategy
Once the Operational/Logistical plan is developed, we are ready to define what the enterprise will cost to start and sustain while business viability is realised. This includes start-up costs, break-even analysis, cash flow projections, capital expenditures, payroll, burn rate projections, and any other pertinent financial information.
Step VIII: The Business Plan
If it is appropriate at the end of the planning cycle, an actual business plan must be developed. At this point, certain decisions must be made about the final element of the business.
Step IX: The Legal Matters
In the final stages, four areas remain Corporate Structure, Intellectual Property, Investment Instrument, and Compliance Capital. This is the point at which a legal advisory team is formed in order to help a business owner protect their assets and raise the necessary capital in order to fund a business.
HOW CAN WE HELP?
We work with clients to develop business models that drive the business strategy. Our advisory capability enables us to assist clients in Finance, Human Capital, Operations, and restructuring.
We offer this for free to our crop of clientele.
At JSC Global Accounting Services, our clients enjoy free advice, contact us today.